Polo Resources eyeing Indonesia coking coal JV

Polo Resources Limited, a Toronto-based mining and exploration investment company with interests in coal and iron ore, announced on Thursday that it has signed a letter of intent (LOI) with Earth Coal Resources Limited, to procure coking coal projects in Indonesia.

Under the LOI Polo will advance up to US$3 million in the form of a convertible loan to a newly incorporated Indonesian company called Polo IndoCoal to fund due diligence and related project development costs in Indonesia, which is led by EarthCoal.

The convertible loan can be drawn down immediately by Polo IndoCoal, and is repayable only with the consent in writing of Polo. On electing to convert the loan, Polo will have the right to convert the loan to 60 percent shares of Polo IndoCoal.

According to the company, EarthCoal is a natural resource investment company focused on investing in coking coal assets and projects in Indonesia. The company, however, did not give further detail about EarthCoal?s assets. (alex)